School Choice, Competition vs. Spending

Drew Perkins welcomes Patrick Graff, Senior Fellow at the American Federation for Children, to discuss his recent research analyzing 15 years of Florida's tax-credit scholarship program. Graff presents a compelling case for why "competition effects" may be significantly more cost-effective than simply increasing per-pupil spending for improving public school outcomes.

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The episode explores the "competition effect"—the phenomenon where public schools improve when they face the threat of losing students to nearby private options. Graff's research found that public school students in high-competition areas in Florida were 120 to 140 days ahead in reading compared to those in low-competition areas. Most strikingly, he estimates that the competition route was 11 times more cost-effective than achieving the same gains through pure spending increases.

Drew and Patrick also navigate the nuances of school choice, including the role of micro-schools, the impact on rural communities, and the critical need for minimum academic quality and transparency. They conclude by discussing the new federal Education Freedom Tax Credit and its potential to expand educational opportunities by bypassing traditional political constraints and driving resources directly to parents.

Timestamped Episode Timeline

• [00:09:07] Patrick Graff's Background – From teaching 3rd grade in Tampa to researching education policy through a sociological lens.
• [00:10:49] Teacher Training & Alternative Certification – Insights from his work with the University of Notre Dame's ACE program.
• [00:20:13] The "Competition Effect" Findings – How Florida's private school options led to significant learning gains for public school students.
• [00:24:06] Competition vs. Spending – A cost-effectiveness comparison showing competition far outperforming traditional budget increases.
• [00:28:11] Reallocating Resources – How the "voucher threat" encourages public school principals to prioritize instructional quality.
• [00:33:31] The Rise of Micro-Schools – How niche, small-scale schools attract both conservative and progressive educators.
• [00:41:35] The Limitations of High Spending – Why the $190 billion ESSER (pandemic) funding showed modest returns on academic instruction.
• [01:01:26] Schools and Civil Society – The historical and current role of private schools in community building and immigrant integration.
• [01:03:45] Impact on Rural Areas – Debunking myths about school choice "starving" rural schools and exploring new service-sharing models.
• [01:08:38] Ensuring Academic Quality – The importance of nationally norm-referenced testing and parent-facing transparency.
• [01:14:29] The Education Freedom Tax Credit – How the new federal tax credit could unlock billions for both private and public school services.